Avg. Square Foot – 2176
Avg. Sold Price Per Sq Ft – $78.71
The number of available homes jumped up by more than 6% over the last 7 days with 394 subdivision homes now currently listed on the MLS at an average of $96.35 per square foot. The number of homes also rose to 138, up from 127 the week prior but it was sluggish first week of sales as only 10 homes sold over the last week, selling at an average of $82.14 per square foot. The increase in active listings was not unexpected and I think you will see that number rise into the mid 400’s over the next 90 days as a result of some of our Canadian neighbors begin to divest themselves of the market down here and taking their investments home which will bring a favorable return for them considering the current exchange rate. A wider selection of homes is always good news for folks currently looking to purchase, and interest rates continue to remain at historic lows although that could change later in the year based on the Fed’s action last December so if you are in the market and interest rates are a determining factor, I would suggest making that purchase in the first six months of this year.
So how about 2015? In short, it was a good year for the Maricopa residential market. 1,534 subdivision homes
The number of available subdivision homes has remained consistent over the last 14 days with 369 homes now listed on the MLS at an average of $96.44 per square foot. 128 homes are currently under contract, down from 148 two weeks prior, and 42 homes have sold over the last two weeks, selling at an average of 84.11 per square foot. So since I last posted an update, the year has passed and a quick look at the 2015 sales shows that we ended the year with 1,503 homes sold at an average of $78.70 per square foot. Based on those numbers, the 2015 market realized a 14% gain in sales and a 4.7% gain in the average sold price per square foot. Next week I will have a more comprehensive look at 2015 and some analysis on what 2016 might bring. Until then, this is the last weekend of a long and fun holiday, so enjoy the day and get ready the year ahead.
The number of available subdivision homes ticked up once again over the last 7 days with 362 homes now listed on the MLS at an average of $96.99 per square foot. 148 homes are currently under contract, down from 158 the week prior and it was another good week in sales as 34 homes sold over the last 7 days, selling at an average of $83.68 per square foot and bringing our YTD numbers now to 1,462 homes sold at an average of $78.53 per square foot. By comparison, 1,284 homes sold through the same time period last year at an average of $75.08 per square foot, which translates to a 13.8% increase in sales and a 4.5% increase in the average sold price per square foot.
So the tightening of economic policy has begun. Janet Yellin took the bold move of raising the rate by a quarter point this week after 7 years of a zero Fed interest rate and signaled that more modest increases were possible. At this point now you have to take her seriously. Yellin indicated that she would gradually raise the rate if the economic measures of labor and inflation remain steady and considering the fall of oil prices it is likely that inflation will not worsen any time soon, and knowing that the unemployment rate is a highly manipulative number, I think another quarter point raise in the rate is likely within the next 6 months. So how does this effect mortgage rates?
Holy November, Batman. November sales proved to be the strongest of the year and I will have more on the in just a bit. First of all there was a slight drop in the number of subdivision homes available over the last week, the first weekly decline in over a month with 354 homes now listed on the MLS at an average of $96.90 per square foot. 159 homes are currently under contract, down from 165 the week prior, and it was another decent week in sales with 23 homes closing escrow and selling at an average of $83.57 per square foot, bringing our YTD numbers now to 1,427 homes sold at an average of $78.41 per square foot. Earlier this year I was convinced the average sold price per square foot would reach the $80 mark, but that trajectory did level off a bit over the summer. The good news is that the 4% appreciation in that measure is on a firm foundation.
The number of available homes remains consistent over the last week with 362 subdivision homes listed on the MLS at an average of $96.55 per square foot. 163 homes are currently under contract, quite a drop from last week’s number of 186, and consequently it was a good week in sales with 31 homes closing escrow over the last 7 days and selling at an average of $84.05 per square foot bringing our YTD numbers now to 1,403 homes sold at an average of $78.33 per square foot. As we near the year’s end and after a couple of good weeks in sales, the Maricopa market is now tracking at a 12.8% increase in homes sold and a 4.6% increase in the average sold price per square foot.